Nifty after a wild budget day took support at the gap area of 17310-17350 and made a rapid recovery back to 17600. A trendline can be drawn that connects the Covid low, the recent swing bottom of 15183 from which we achieved ATH and today's low. A Fib retracement drawn from ATH 18887 and swing bottom of 15183 indicates that Nifty is just above its 38.2% retracement area.
There is a possibility that Nifty might break the trendline next week followed by a break of 17400-17450 region would drag it down to 17014-17094 area which is the next gap area for Nifty. It is also the 50% retracement area of mentioned Fib high and low.
Might not happen this week because of extreme bearish positioning in options and futures by FIIs make it incredibly difficult to short because of possibility of short covering. Let's wait and watch the weekly closing this Friday which would give further indication of the move next week.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
There is a possibility that Nifty might break the trendline next week followed by a break of 17400-17450 region would drag it down to 17014-17094 area which is the next gap area for Nifty. It is also the 50% retracement area of mentioned Fib high and low.
Might not happen this week because of extreme bearish positioning in options and futures by FIIs make it incredibly difficult to short because of possibility of short covering. Let's wait and watch the weekly closing this Friday which would give further indication of the move next week.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.